MUNICH: Rheinmetall AG is planning to produce more than twice as much gunpowder at its factory near Munich to address pressure on ammunition supplies caused by Russia’s war on Ukraine.
The German defence contractor said it aims to increase annual gunpowder output at its Aschau am Inn facility in the next two years to as much as 4,200 tonnes, as well as lift production of propellant charges to more than a million.
It’s investing around €350mil (US$399mil) in Aschau, including nearly doubling the number of workers to 1,300, as well as €300mil in its three gunpowder plants in the Swiss town of Wimmis and Murcia and Burgos in Spain.
At the Aschau site, Rheinmetall is targeting €700mil in annual revenue from propellants, according to chief executive officer Armin Papperger.
“Self-sufficiency is crucial, particularly regarding the powder, which is produced by only a few manufacturers worldwide,” Papperger said at a groundbreaking ceremony with Bavaria premier Markus Soeder and deputy German defence minister Nils Schmid.
“The Aschau site will thus make a decisive contribution to the national sovereignty and credible defence capabilities of Germany and Europe,” he added. “The North Atlantic Treaty Organisation (Nato) is not combat-ready without this facility.”
Massive Ukrainian use of ammunition in its defence against Russia’s full-scale invasion in early 2022 has severely depleted stockpiles held by Germany and its Nato and European Union allies, triggering a jump in production as nations race to replenish supplies.
Europe only has a handful of propellant manufacturers, including Rheinmetall, French contractor Eurenco SA and Norwegian-Swedish firm Nammo AS.
Propellant powders are used to fire projectiles and thus constitute a crucial component of artillery shells and other types of ammunition. By 2030, Rheinmetall aims to produce 20,000 tonnes of gunpowder annually. — Bloomberg
